Gavel (Courtesy photo)

Gavel (Courtesy photo)

Relative of Amazon employee used insider info to trade $1.4 million in stocks

The Bothell man pleaded guilty Nov. 5 for securities fraud

  • Thursday, November 5, 2020 3:11pm
  • News

A 36-year-old Bothell man pleaded guilty to securities fraud for insider trading activity with Amazon information he obtaining from a relative. The man traded and made a profit of about $1.42 million in stock.

The man did this between 2015 and 2018 with Amazon inside information from his relative, who know longer works at Amazon. The relative was in the Amazon Finance Department and could access confidential information about revenues and expenses. They were also subject to something called “blackout periods” where no stock was allowed to be traded by her or her immediate relatives, including the Bothell resident.

Despite this, the 36-year-old traded stock for himself and his father during these blackout periods.

As part of the plea agreement, the relative does not face criminal charges, and the Bothell man has agreed to forfeit the $1.42 million to the U.S., according to the Department of Justice. Prosecutors, as part of the plea, will not be recommending a sentence of more than 33 months in prison, but security fraud is punishable by up to 25 years in prison and a $250,000 fine.

On Sept. 28, the Bothell man was charged by the Securities and Exchange Commission (SEC) in a civil insider trading case. The recoveries in that case will be credited toward the forfeiture owed to the U.S., according to a press release.

In consideration of how we voice our opinions in the modern world, we’ve closed comments on our websites. We value the opinions of our readers and we encourage you to keep the conversation going.

Please feel free to share your story tips by emailing

To share your opinion for publication, submit a letter through our website Include your name, address and daytime phone number. (We’ll only publish your name and hometown.) We reserve the right to edit letters, but if you keep yours to 300 words or less, we won’t ask you to shorten it.

More in News

file photo
Independent investigation conducted afte Lynnwood Jail death

Cause of death determined to be a suicide by medical examiner.

Cows at Tollgate Farm Park in North Bend. Photo by Conor Wilson/Valley Record
State’s dairy workers begin earning overtime with new law

“This bill corrects a historic injustice,” said Sen. Karen Keiser (D-Des Moines).

The U.S. The Forest Service announced that camp fires are prohibited in the Mt.Baker-Snoqualmie National Forest beginning July 30. File photo
Fires banned in Snoqualmie National Forest

The U.S. The Forest Service announced that camp fires are prohibited in… Continue reading

A Darigold dairy worker practices picketing as a strike is approved by the union. Photo courtesy of Julia Issa
Puget Sound Darigold workers on verge of strike amid contract negotiations

Workers cite lack of medical leave, outsourcing and bad-faith negotiations as reason for strike.

Critical race theory became a political buzzword last fall after Gig Harbor resident Christopher Rufo (right) joined commentator Tucker Carlson on Fox News. (Screenshot from YouTube broadcast)
Educational merit of critical race theory sparks heated debate

In Washington, schools have seen parents protest and threaten to remove their children from schools.

The King County Courthouse. File photo
Sexual assault leads to calls for closing King County Courthouse

Crime is rising in the ’dangerous environment that has surrounded our seat of government.’

Courtesy of the Washington State Department of Health
COVID-19 cases, hospitalizations are rising in Washington

Data suggests the vaccine is effective in preventing hospitalization for COVID-19

File photo
King County Council OKs millions for courts overwhelmed by pandemic backlog

Some lawyers testified that the backlog has created an “access to justice” problem.

File photo
Brief history of rats in the Puget Sound region – and the problem they present

Local exterminator noticed big change in rats over the past 40 years.

Most Read